Flip or rental?

[Tami R.]

We have about 30 rentals - have done two flips in the last 5 years, did ok but prefer long term.

We purchased two homes this fall basically $10k each in a smaller community (10 miles from our main city). We are putting $30k into rehab - everything brand new. Smaller comm. so rent in this little town would be $550-$600 per month or we could sell it within 90 days for $70k.

Thoughts?

[Jason Eyerly]

Depends if you want cash or cash flow. It's preference basically. Perhaps even a lease to own? This way you get your lump sum over a long time, and if they default, you get the property back and do it all over again. I'm personally looking to build capital and net worth initially, so I'd sell and use the equity towards a loan of some sort. You could sell and put $20k down on three nicer little to no work properties that are already cash flowing. Just my two cents. Keep us up to date!

Best Regards,

Jason Eyerly